WVU BCOR 320 - Chapter 19 starting a business (3 pages)

Previewing page 1 of 3 page document View the full content.
View Full Document

Chapter 19 starting a business



Previewing page 1 of actual document.

View the full content.
View Full Document
View Full Document

Chapter 19 starting a business

283 views


Lecture number:
35
Pages:
3
Type:
Lecture Note
School:
West Virginia University
Course:
Bcor 320 - Legal Environment of Business
Edition:
1

Unformatted text preview:

BCOR 320 1nd Edition Lecture 35 Chapter 19 Starting a business Sole Proprietorship An unincorporated business owned by one person Advantages Can run a business without taking any formal steps to create an organization Not required to register with the government Not required to file a separate tax return Disadvantages Owner responsible for all of the business s debts Owner of a sole proprietorship has limited options for financing the business Corporations Limited liability Protects managers and investors from personal liability for the debts of the corporation and the actions of others Transferability of interests Provide flexibility for enterprises small and large Duration Perpetual existence Can continue without their founder Logistics Corporations involve a lot of expense and effort to create and operate Taxes Because corporations are taxable entities they must pay taxes and file returns S corporations Shareholders of S corps have The limited liability of a corporation The tax status of a partnership Restrictions faced are There can only be one class of stock There can be no more than 100 shareholders Shareholders cannot be partnerships or other corporations Shareholders must be U S citizens or residents Shareholders must agree that company should be an S corporation These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute Close Corporation A company whose stock is not publicly traded Common provisions of close corporations Protection of minority shareholders Transfer restrictions Flexibility Dispute resolution Limited Liability Companies An LLC offers the limited liability of a corporation and the tax status of a partnership Limited liability Members are not personally liable for the debts of the company Tax status Income flows through the company to the individual members avoiding double taxation of a corporation Formation To organize an LLC charter and operating



View Full Document

Access the best Study Guides, Lecture Notes and Practice Exams

Loading Unlocking...
Login

Join to view Chapter 19 starting a business and access 3M+ class-specific study document.

or
We will never post anything without your permission.
Don't have an account?
Sign Up

Join to view Chapter 19 starting a business and access 3M+ class-specific study document.

or

By creating an account you agree to our Privacy Policy and Terms Of Use

Already a member?